Microsoft Stock (MSFT) Drops After the Tech Giant Cut Its AI Software Sales Quotas

Microsoft Stock (MSFT) Drops After the Tech Giant Cut Its AI Software Sales Quotas
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William White](/news/author/william-white)

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Microsoft stock fell on Wednesday alongside reports that it has cut its AI software sales quotas.

![Microsoft Stock (MSFT) Drops After the Tech Giant Cut Its AI Software Sales Quotas](https://blog.tipranks.com/wp-content/uploads/2025/12/msftstock-750x406.jpg)

Microsoft [(MSFT)](https://www.tipranks.com/stocks/msft) stock was down on Wednesday following a report from *The Information* about a change to its [artificial intelligence](https://www.tipranks.com/compare-stocks/artificial-intelligence) (AI) sales quotas. According to the publication, the company has cut its sales quotas for [AI](https://www.tipranks.com/compare-stocks/artificial-intelligence) software as the technology hasn’t been as widely accepted as the tech giant expected.

This report claims that consumers have pushed back against Microsoft’s AI software offerings, making it difficult for the company to achieve its sales goals. While AI underwent a boom in 2025, there has also been significant resistance to the technology from writers, artists, and others who have concerns about what an AI future means for their work and hobbies.

News of Microsoft’s need to reduce its AI software sales expectations has also reignited fears of an AI bubble among enthusiasts of the technology. With the AI boom in 2025, many companies, including Microsoft, Nvidia [(NVDA)](https://www.tipranks.com/stocks/nvda), Advanced Micro Devices [(AMD)](https://www.tipranks.com/stocks/amd), Intel [(INTC)](https://www.tipranks.com/stocks/intc), and Broadcom [(AVGO)](https://www.tipranks.com/stocks/avgo), have seen large rallies and increased demand for their products to power data centers. However, this demand from corporations might have outpaced consumer interest in AI, which could pop the sector’s bubble.

**Microsoft Stock Movement Today**
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[Microsoft stock was down 2.66% on Wednesday](https://www.tipranks.com/stocks/msft), but was still up 14% year-to-date. The stock has also rallied 12.02% over the past 12 months. As noted, MSFT stock has benefited in 2025 from the AI boom, and the company has [significantly invested in the sector](https://www.tipranks.com/news/microsoft-and-meta-drive-big-techs-ai-spend-toward-400-billion).

[![](https://blog.tipranks.com/wp-content/uploads/2025/12/image-343.png)](https://www.tipranks.com/stocks/msft)

**Is Microsoft Stock a Buy, Sell, or Hold?**
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Turning to Wall Street, the analysts’ consensus rating for Microsoft is Strong Buy, based on 33 Buy and two Hold ratings over the past three months. With that comes an [average MSFT stock price target of $629.98](https://www.tipranks.com/stocks/msft/forecast), representing a potential 32.29% upside for the shares.

[![](https://blog.tipranks.com/wp-content/uploads/2025/12/image-344-1024x756.png)](https://www.tipranks.com/stocks/msft/forecast)

**[See more MSFT stock analyst ratings](https://www.tipranks.com/stocks/msft/forecast)**

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